More than 370 staff will be made redundant as a result of the collapse of Carillion, the construction firm that dramatically collapsed last month.
The huge company went into compulsory liquidation on January 12 with debts of up to £5billion including a black hole in its pension fund of around £2.6billon on some estimates.
The Official Receiver which is now in control of the company said 377 jobs would go, while 919 positions would be safeguarded.
The receiver in charge of collapse firm Carillion says 377 staff will be made redundant while 919 staff will keep their jobs
The staff whose jobs have been saved are involved in infrastructure projects, central and local government, and construction contracts and are transferring to new employers who have taken on this work.
Those who have lost their jobs will be entitled to make a claim for statutory redundancy payments.
A spokesman for the Official Receiver said today: ‘As part of the ongoing liquidation of the Carillion group I am pleased we have been able to safeguard the jobs of 919 employees today.
‘Most staff are transferring on existing or similar terms and I will continue to facilitate this wherever possible as we work to find new providers for Carillion’s other contracts.
‘Despite best efforts it has not been possible to secure the jobs of 377 staff, who will be made redundant. ‘
Carillion went bust last month with huge debts, putting a number of projects in jeopardy
The spokesman added: ‘I am expecting many employees working on other Carillion contracts to transfer in the coming weeks and we are continuing to keep the workforce updated as these arrangements are finalised.’
The staff whose jobs have been saved are involved in infrastructure projects, central and local government, and construction contracts and are transferring to new employers who have taken on this work.
Those who have lost their jobs will be entitled to make a claim for statutory redundancy payments.
The spokesman added:’I recognise that this will be a worrying time for all those affected, their families and local communities.
‘I would like to thank all staff for their professionalism throughout the liquidation.’
The Construction Industry Training Board (CITB) said yesterday that 553 of the 1,400 apprentices affected by the crisis had been offered a role with another employer.
This comes amid an official investigation launched into top bosses at Carillion who changed the rules so they could keep their bonuses as the firm collapsed and put 23,000 jobs at risk.
The watering down of so-called ‘clawback conditions’, which would have allowed investors to demand the return of bonuses in the event of company failure, came in 2016 when the firm was already showing signs of financial stress.
The bonus changes, as well as bumper pay packets for senior staff, were last month branded ‘highly inappropriate’ by leading business lobby group the Institute of Directors.
Richard Howson, who headed the company from 2012 until July 2017, pocketed £1.5 million in 2016 – including a £122,612 cash bonus and £231,000 in pension contributions.
As part of his departure deal, Carillion agreed to continue paying him a £660,000 salary and £28,000 in benefits until October – even though he left the company for good last autumn after a brief spell as an adviser.
Former finance chief Zafar Khan, who left Carillion in September, will receive £425,000 in base salary for 12 months.
Carillion workers line up outside a staff office to check on the status of their jobs in London in January
And Interim chief executive Keith Cochrane will be paid his £750,000 salary until July, despite leaving the company in February.
He was not at the company when the rules governing bonuses were relaxed.
The collapse of Carillion on January 15 threw 450 construction projects across the public sector into chaos, from the running of prisons to the building of HS2.
Jobs in the UK and overseas are at risk after the firm ran out of time to find a way to restructure its £1.5bn debt burden following failed talks last month.